Supply

• quantity of a product that producer is willing and able to sell onto the market at a given price in a given time period

Supply curve

• show changes in price causing movements along a supply curve
• show shifts indicating increase and decreased supply

Upward sloping supply curve

• Law of supply: increase in price → expand quantity supply
• Slopes up from left to right
  • ↑ price → ↑ quantity supply
  • ↓ price → ↓ quantity supply

Vertical supply curve

• Fixed supply: impossible to increase quantity supply

↑ price → = quantity supply

Market supply

• All sellers’ total supply

Movement along the supply curve

Upward movement: Increase in price→ Rise in quantity supplied

Rightward shift: Increase in supply, cause by factors other than price

Leftward shift: Decrease in supply, cause by factors other than price